Overview
The Affordable Rental Housing Community Improvement Plan (CIP) is a city‑wide project to increase affordable rental housing in Mississauga. The City is exploring incentives for developers that build rental housing in Mississauga. This is happening through consultation with developers and industry partners.
After consultations, City staff will present a report to Council in spring 2024. It will outline a proposed city-run incentive program for affordable rental housing units.
The plan aims to create at least 100 new affordable rental units each year over a three-year period. There’s potential for the program to extend beyond three years.
More rental units can help us increase the rental vacancy rate to our goal of three percent. It will also help us meet municipal housing targets set by the Province of Ontario.
The program will stimulate private and non-profit sector investment in new affordable rental housing through financial incentives. Developers will be able to combine City incentives with those from other levels of government. These may include the Region of Peel Affordable Rental Incentives Program and Canada Mortgage and Housing Corporation grant or loan programs.
Proposed incentives
Staff will weigh the cost of incentives against improvements to affordability. We’ll also consider recent legislative changes and their impact on affordable rental construction.
New units will need to meet defined affordability criteria to be eligible. The incentives may be based on unit type, location, affordability or other factors. The program may include both financial and non-financial incentives such as:
- Capital grants
- Development charge deferrals or grants
- Planning application and building permit fee relief
- Parkland dedication exemptions
- Parking reductions
- Property tax grants
- Expedited application processing
Consultation
We’re seeking community and industry feedback on the plan through public consultations, including a statutory public meeting on May 21, 2024. The findings from these consultations will shape the final CIP.
Background
The need for affordable housing is a critical issue, affecting one in three households in Mississauga, and a priority of the City. Renters are facing greater affordability issues than homeowners due to a lack of supply of affordable rental units.
The Affordable Housing Strategy was developed in 2017 to combat affordability issues. As part of the strategy, the plan was launched in 2019 to address low supply of new and existing rental units, as well as low rental vacancy rates.
A Community Improvement Plan allows municipalities to designate a geographic project area where development is needed to address local priorities. A city-wide Community Improvement Project Area was designated by Council in July 2019.
The project was put on hold temporarily due to the COVID‑19 pandemic and changing provincial legislation.
In December 2023, the federal government and the City announced a $112.9 million agreement under the Housing Accelerator Fund. The funds will help deliver more homes and improve affordability. Part of that funding is allocated to incentives under this plan.
Our progress
As of 2023, nearly 90 percent of the Affordable Housing Strategy’s 40 actions are completed or in progress. Mississauga has also pledged to meet the province’s 2051 growth target.
The Affordable Rental Housing CIP is a key action under Growing Mississauga: An Action Plan for New Housing. The action plan identifies steps the City can take to get more homes built, streamline building approvals and make homes more affordable.
For more information on how we’re addressing the housing issue, read about our strategy Making Room for the Middle.
